CommentaryFor the six-month period ended 30 June 2025

Safety

Exxaro remains unwavering in its commitment to achieving zero harm. This is exemplified by the successful rollout of our refreshed One Voice Safety Strategy, which is anchored on five key pillars: streamlined communication, incredible leadership, leading safe practices, fair play and being a learning organisation.

As at 15 August 2025, Exxaro recorded zero work-related fatalities, marking an outstanding 3-year fatality-free milestone. This milestone underscores the effectiveness of our safety programmes and the unwavering commitment of our workforce. Our LTIFR remained steady at 0.05 in 1H25, matching the rate recorded in 1H24 and staying within our limit of 0.05.

People

At the heart of Exxaro's success story is our people. Their commitment, resilience and shared sense of purpose continue to drive consistent performance across Exxaro. We remain committed to building a diverse, inclusive and equitable culture where everyone knows that they belong. We strive for a workplace that is safe, that prioritises the health, wellbeing and professional growth of all our employees. This is foundational to our success and long-term sustainability.

We are proud of our sustained performance with focused efforts to promote the representation of women, youth, differently challenged and historically disadvantaged persons. Of our total employees, more than 35% are women, 42% are youth, 2% are differently challenged and 90% come from historically disadvantaged backgrounds. Furthermore, during 1H25, we invested more than R81 million towards bursaries, internships and skills development programmes, highlighting our commitment to developing our talent including our host communities to stay relevant for the job market.

Social investment and development

Delivering meaningful socio-economic value remains a cornerstone of Exxaro's purpose of powering better lives in Africa and beyond. Our initiatives are designed to reduce unemployment, improve access to quality education, and support infrastructure development, empowering host communities and fostering inclusive growth. As at 30 June 2025, Exxaro's total social investment amounted to R815 million.

A key component of this investment is our ESD programme, which continues to drive transformation and economic participation. During the reporting period:

• 341 black‑owned MSMEs were supported through local procurement spend of R580 million
• Five MSMEs received direct funding support totalling R37 million

These efforts reflect our commitment to building resilient communities and enabling long-term economic empowerment through targeted investment and strategic partnerships.

Environmental stewardship

Achieving carbon neutrality by 2050 and being a catalyst for economic growth and environmental stewardship are two of our five strategic objectives and guide our efforts towards reducing emissions and safeguarding natural resources, ensuring that sustainability is embedded into how we operate. Through this, our goal of ensuring a sustainable future for our employees, communities and the planet remains alive and firmly rooted in our strategy.

Climate change response strategy implementation

Following the Board's approval of our decarbonisation strategy, Exxaro has made significant progress in executing key initiatives aligned with our short-term goal of reducing emissions by 40% by 2030. Central to this effort is LSP, which is currently under construction and will contribute meaningfully to our renewable energy portfolio.

Our commitment to decarbonisation extends beyond our operations to our customers. Through our 80% stake in Karreebosch SPV, we have signed a 20-year power purchase agreement to supply 140MW of wind-generated electricity to Northam Platinum Limited. The Karreebosch project is located between the towns of Sutherland (Northern Cape) and Matjiesfontein (Western Cape) and will deliver clean energy via the national grid. This project not only strengthens South Africa's industrial energy security but also accelerates the country's transition to a low-carbon economy.

In addition, our ESG-related MoU with Eskom, signed in April 2025, has paved the way for collaborative efforts in:

• Desulphurisation (air quality management)
• Renewable energy development
• Skills development
• Community agricultural initiatives

Furthermore, our MoUs with the Council of GeoScience, the Agriculture Research Council and Ekim Wildlife are continuing to advance our research on scopes 1, 2 and 3 emissions.

These partnerships embody our integrated approach to sustainability, advancing environmental progress while generating socio-economic value.

Environmental performance

In 1H25 we reported zero level 2 and 3 environmental incidents. We are making progress on land rehabilitation, prioritising concurrent rehabilitation in all our active operations, reducing long-term liabilities, enhancing biodiversity outcomes, while strengthening our social licence to operate.

Our carbon intensity increased by 11% to 4.58tCO₂e/ktTTM from 4.08tCO₂e/ktTTM in 1H24. This is above our target of 4.0tCO₂e/ktTTM, primarily driven by production challenges. Water intensity of 177l/t RoM was within our target of 175l/t RoM, despite an increase of 8% from 164l/t RoM in 1H24, impacted by reduced RoM tonnes, specifically at Grootegeluk. Our long-term goal of reducing our scope 1 and 2 emissions remains and we are confident that through disciplined operational management and our energy efficiency initiatives, we will improve our short-term performance.

The start of 2025 was marked by anticipated shifts in the United States' economic and foreign policy following the presidential election. Since taking office in January, US President Donald Trump has introduced a series of impactful measures across immigration, energy trade and international relations - most notably, the reintroduction of import tariffs, which have had ripple effects across global markets.

Coal markets and commodity price

The global seaborne thermal coal market experienced continued headwinds in 1H25. This was driven by high stockpiles in key South African export markets, declining gas prices, increased adoption of renewable energy, and a rise in nuclear power generation. These pressures reflected structural changes in key consuming markets, particularly China and India.

In India, domestic steel producers faced intensified competition from lower-cost imported steel, which further suppressed demand for South African coal. At the same time, India's coal output rose, primarily supporting its power generation sector.

Higher gas and nuclear power generation in Japan, Korea, and Taiwan contributed to a decline in coal consumption. This trend, coupled with subdued Chinese offtake, drove Australian coal prices to a four-year low of US$90 per tonne. In Europe, gas price volatility stemming from ongoing Russia-Ukraine ceasefire negotiations modestly influenced coal markets.

The benchmark API4 RBCT export price averaged US$92 per tonne in 1H25, compared to US$101 per tonne in 1H24, a decline of 9%.

TFR continues to experience significant operational challenges, including cable theft, power failures, shortages of locomotives and wagons, and deteriorating infrastructure. In 1Q25 a rail wash-away affected Grootegeluk, while two derailments in 2Q25 further impacted throughput. Despite these setbacks, the RBCT industry volumes improved to 27Mt for 1H25 (1H24: 25.3Mt). Although rail performance remains inconsistent, there have been signs of improvement, particularly in the Mpumalanga region. In the Waterberg region, weekly train frequencies increased from two to three trains in 1Q25, and further from three to four trains in 2Q25.

Comparability of results

To enhance the comparability of performance between reporting periods, we have adjusted earnings for non-recurring items (referred to as non-core adjustments) to report adjusted financial results. These adjustments are consistent with the headline earnings adjustments for both 1H25 and 1H24 (refer note 4 of the interim financial statements).

Group revenue and EBITDA

	Revenue				EBITDA1
R million	1H25	1H24	2H24		1H25	1H24	2H24
Coal	19 813	18 251	20 864		5 552	5 060	5 176
Energy	675	652	759		432	470	561
Ferrous	86	75	115		(2)	(12)	(33)
Other2	5	3	6		(405)	(400)	(399)
Total	20 579	18 981	21 744		5 577	5 118	5 305

1	EBITDA is calculated by adjusting net operating profit before interest and tax with depreciation, amortisation, impairment charges or impairment reversals, and net losses or gains on disposal of assets and investments (including translation differences recycled to profit or loss). Refer note 5 of the interim financial statements for key numbers used in the calculation of EBITDA.
2	Primarily relates to corporate office and smaller operations (refer note 5 of the interim financial statements).

Group revenue increased by 8% to R20 579 million (1H24: R18 981 million), driven mainly by a 9% increase in coal revenue and a 4% increase in energy revenue.

Group EBITDA rose by 9% to R5 577 million (1H24: R5 118 million), largely due to a 10% increase in coal EBITDA, partially offset by an 8% decline in energy EBITDA. The negative contribution from the other operating segment remained flat at R405 million (1H24: R400 million). Further details are provided in the segmental performance discussions.

Adjusted equity-accounted income

	Adjusted equity-accounted income/(loss)				Dividends received
R million	1H25	1H24	2H24		1H25	1H24	2H24
Coal: Mafube	45	60	183				130
Coal: RBCT	(8)	3	(9)
Ferrous: SIOC	1 943	1 937	1 446		1 732	2 107	1 634
Other: Black Mountain	289	(83)	148
Total	2 269	1 917	1 768		1 732	2 107	1 764

Adjusted equity-accounted income rose by 18% to R2 269 million (1H24: R1 917 million), primarily driven by a positive contribution of R289 million from Black Mountain in 1H25, compared to a negative contribution of R83 million in 1H24.

Group earnings

Headline earnings increased by 12% to R4 154 million (1H24: R3 697 million), primarily driven by a 9% rise in group EBITDA and an 18% increase in adjusted equity-accounted income.

The weighted average number of shares decreased to 241 million (1H24: 242 million) due to the ongoing share repurchase programme, translating into HEPS of 1 724 cents per share (1H24: 1 528 cents per share).

Cash flow and capital expenditure

Cash generated from operations increased by 10% to R5 305 million (1H24: R4 803 million). Combined with dividends received from equity-accounted investments of R1 732 million (1H24: R2 107 million), this was sufficient to fund both capital expenditure and the payment of ordinary dividends.

Total capex rose by 87% to R1 986 million (1H24: R1 061 million), comprising:

• R872 million for sustaining capital, primarily in the coal business
• R1 114 million for expansion capital, mainly related to LSP and the Karreebosch project under the energy portfolio

Debt exposure

Strong operational cash generation increased the group's net cash position to R18 252 million as at 30 June 2025 (excluding energy's net debt), up from R16 309 million at 31 December 2024.

Unreviewed coal production and sales volumes

	Production				Sales
'000 tonnes	1H25	1H24	2H24		1H25	1H24	2H24
Thermal	18 261	18 210	18 858		18 874	18 504	20 158
Commercial – Waterberg	11 182	11 272	12 282		10 816	10 978	12 326
Commercial – Mpumalanga	4 148	3 647	4 009		1 715	998	1 498
Exports					3 431	3 242	3 766
Tied1	2 931	3 291	2 567		2 912	3 286	2 568
Metallurgical	1 102	1 042	1 431		251	351	344
Commercial – Waterberg	1 102	1 042	1 431		251	351	344
Total coal (excluding buy-ins)	19 363	19 252	20 289		19 125	18 855	20 502
Thermal coal buy-ins	2		2
Total coal (including buy-ins)	19 365	19 252	20 291		19 125	18 855	20 502

1	Matla mine supplying its entire production to Eskom.

Production and sales volumes

Total production volumes (excluding buy-ins) increased by 111kt (1%), primarily due to increased production at the Mpumalanga commercial mines; namely Leeuwpan, Mafube and Belfast. This was partially offset by lower output at Matla (tied mine) and Grootegeluk.

Total sales volumes increased by 1% (270kt), mainly as a result of higher domestic and export sales, which were partly offset by reduced sales to Eskom.

Thermal coal

Commercial Waterberg

Production at Grootegeluk declined marginally by 90kt (1%), aligned with Eskom's reduced demand and to manage full stockpiles.

Sales volumes decreased by 162kt (1%), primarily due to a reduction in Eskom offtake resulting from maintenance outages and coal stacking and reclaiming challenges at the Matimba power station.

Commercial Mpumalanga

Coal production from the commercial Mpumalanga mines increased by 501kt (14%) compared to 1H24, driven by:

• A 208kt (18%) increase at Leeuwpan, supported by improved output from the crush and screen plant, compared to 1H24 when a change in mining sequence had negatively affected production
• A 182kt (23%) increase at Mafube, due to proactive pit maintenance planning and improved machine availability and performance
• A 111kt (6%) increase at Belfast, supported by higher RoM feed tempos

Domestic coal sales from the Mpumalanga mines rose by 717kt (72%), mainly due to:

• A 277kt (275%) increase at Mafube, as all power station coal that was not exported was redirected to the local market
• A 235kt (32%) increase at Leeuwpan, driven by greater product availability and new free carrier agreements
• A 205kt (119%) increase at Belfast, supported by higher product availability and strong local market demand

Export commercial

Export sales increased 189kt (6%), supported by the use of alternative distribution channels and an improvement in TFR performance.

Tied

Coal production and sales from Matla declined by 360kt (11%) and 374kt (11%), respectively, compared to 1H24. The decrease in production was primarily due to:

• The decommissioning of the short wall section (597kt)
• The transition from 3-seam to 4-seam mining at Mine 2 (153kt)
• Unfavourable geological conditions at Mine 3 (314kt)

This decrease was partly offset by a strong performance at Mine 1 (664kt).

Metallurgical coal

Grootegeluk's metallurgical coal production increased by 60kt (6%), aligned with higher export demand.

However, sales volumes declined by 100kt (28%), primarily due to reduced offtake from ArcelorMittal South Africa Limited for SSCC, following the flooding in February 2025 that disrupted deliveries. Additionally, SSCC demand decreased due to a weaker ferrochrome market.

Coal revenue and EBITDA

	Revenue				EBITDA
R million	1H25	1H24	2H24		1H25	1H24	2H24
Commercial – Waterberg	11 753	10 657	11 906		5 364	5 150	4 966
Commercial – Mpumalanga	4 511	4 636	5 257		230	(39)	285
Tied1	3 549	2 958	3 701		95	93	82
Other					(137)	(144)	(157)
Coal	19 813	18 251	20 864		5 552	5 060	5 176

1	Matla mine supplying its entire production to Eskom.

Coal revenue increased by 9% to R19 813 million (1H24: R18 251 million), primarily driven by higher sales volumes to the export and domestic markets against higher Eskom price, partly offset by lower export prices with unfavourable exchange rates. Our realised average export price was US$88 per tonne (1H24: US$96 per tonne) on the export volumes.

Notably, Exxaro maintained a strong 96% price realisation, up from 95% in 1H24, reflecting the success of our ongoing market-to-resource optimisation initiatives.

Coal EBITDA increased by 10% to R5 552 million (1H24: R5 060 million), reflecting an operating margin of 28%. This improvement was mainly driven by:

• Higher sales volume (+R763 million)
• Improved overall sales price (+R208 million)

These gains were partially offset by:

• Higher exchange rate losses (-R209 million), both realised and unrealised
• Cost inflationary pressures (-R140 million)
• Higher employee costs (-R73 million), driven by the achievement of performance targets
• Negative movements in environmental rehabilitation provisions (-R61 million)
• Increased selling and distribution costs (-R38 million), linked to higher export volumes

Coal equity-accounted investments

Adjusted equity-accounted income from Mafube JV decreased by 25% to R45 million (1H24: R60 million), mainly due to lower prices.

Coal capital and projects

R million	1H25	1H24	2H24	1H25 vs 1H24 % change
Sustaining	866	1 044	1 036	(17)
Commercial – Waterberg	761	968	844	(21)
Commercial – Mpumalanga	105	76	192	38
Total coal capex	866	1 044	1 036	(17)

Sustaining capex in the coal business decreased by R178 million (17%) in 1H25, primarily due to timing differences in the haul truck replacement and rebuild strategy at Grootegeluk.

Cennergi's operating wind assets generated 337GWh of electricity in 1H25 (1H24: 339GWh), with revenue increasing by 4% to R675 million (1H24: R652 million). The Operational EBITDA margin remained strong at 80% (1H24: 79%), supported by the long-term offtake agreements with Eskom.

Construction is progressing on LSP and the Karreebosch project with a combined capacity of 208MW. Commercial operation is expected in 1H26 and 1H27, respectively.

Project financing for Cennergi's operating wind assets stood at R3 909 million (1H24: R4 222 million) with full settlement by 2031. Financing for LSP and the Karreebosch project increased to R2 391 million (1H24: R850 million) and will be fully settled by 2042 and 2046, respectively. The project financing has limited recourse to Exxaro's balance sheet and is hedged through interest rate swaps.

The ferrous business includes our FerroAlloys operation, which remains non-core to Exxaro. The disposal process is progressing well, with the signing of a sale and purchase agreement expected to be concluded in 4Q25.

Ferrous equity-accounted investment

Adjusted equity-accounted income from SIOC remained stable at R1 943 million (1H24: R1 937 million), despite continued pressure from lower iron ore prices.

In February 2025, Exxaro received a final dividend of R1 732 million from SIOC. In July 2025, SIOC declared an interim dividend to its shareholders. Exxaro's share of the dividend amounts to R1 535 million, which is R197 million lower than the final dividend. The interim dividend will be accounted for in 2H25.

The other segment primarily includes costs associated with the corporate office and smaller operations. It recorded an EBITDA loss of R405 million, in line with the R400 million EBITDA loss reported in 1H24.

Other equity-accounted investment

The increase in adjusted equity-accounted income from Black Mountain of R372 million (1H24: R83 million equity-accounted loss) was mainly supported by increased production and sales volumes due to more favourable mining conditions, as well as interest income on project funding received with first capital repayment date scheduled in June 2026.

The following environmental authorisations were received in 1H25:

• The Belfast and Leeuwpan mines' water use licence amendment applications, aligning the operations with licence conditions
• The Grootegeluk water use licence (for Turfvlakte area) ensuring that the mine can mine areas essential to the current LoM plan
• The waste management licence for the Matla brine ponds, extending the operation of the water treatment plant and brine ponds for another 10 years

Consistent with the Minerals and Petroleum Resources Development Act of 2002 and the National Water Act, the mining right and water use licence applications for the whole group are undergoing a process of renewal. Applications have been submitted to Department of Water and Sanitation as well as the DMPR and we expect them to be granted during 2H25.

The Coal Resources and Coal Reserves estimation process is in progress, aligned with the annual business plans and strategic LoM plan reviews for the 2025 reporting period.

There is no material change in Exxaro's total or attributable Coal Resources and Coal Reserves for 1H25 other than normal LoM depletion.

Both Coal Resources and Coal Reserves lead Competent Persons are in the full-time employment of Exxaro: Henk Lingenfelder (Bachelor of Science: geology (Honours), Certified Professional Natural Scientist, Pr Sci Nat: 400038/11) as the group manager: mineral asset management and exploration (MAM&E) and Chris Ballot (Bachelor of Engineering (mining), Engineering Council of South Africa (ECSA), 20060040) as the group manager: mine technical services. Both persons have approved the information, in writing in advance of this publication.

The directors are not aware of any significant matter or circumstance arising after the reporting period up to the date of this report.

Economic context

Since April 2025, trade-related risks have eased following the US reversal of reciprocal tariffs and resumption of negotiations with China. These developments had a positive effect on financial and commodity markets, leading to recoveries in equity indices, crude oil prices, and the US dollar.

Nonetheless, global uncertainty remains elevated, with market confidence still fragile due to the unpredictable nature of the US trade policy.

In South Africa, real GDP growth was modest at 0.1% quarter-on-quarter in early 2025. However, there is cautious optimism that economic activity will strengthen in the second half of the year, despite the ongoing volatility in global trade dynamics.

Commodity markets and price

Seaborne thermal coal may find support during the northern hemisphere summer driven by normalising stockpiles and rising seasonal demand. European imports are expected to remain stable influenced by limited wind and hydro generation, coal blending requirements, renewed emphasis on grid stability following the recent blackouts in Spain, and the need for price stability in the power markets.

The outlook for 2H25 appears stable, supported by consistent domestic supply and a diversified energy mix in India and China, including renewables, hydro, and gas. Other markets such as Japan, Korea, and Taiwan also show adequate energy supply across nuclear, gas, renewables, and coal.

European restocking, which can influence South African coal prices, particularly in 4Q25, may have a muted impact this year. Sufficient gas storage capacity is expected to meet winter demand, potentially reducing the need for increased coal consumption.

Domestically, improved economic activity could stimulate coal demand, especially as Eskom progresses in resolving operational challenges. Despite ongoing infrastructure constraints, we continue to explore all viable routes to market to meet customer needs and unlock value.

In the iron ore market, rising supply and subdued Chinese demand remain key headwinds for our investment in SIOC. India stands out as the only market with notable growth in steel production. Additionally, any new tariffs imposed by the US could introduce further volatility across equity and commodity markets.

Operational performance

In the Waterberg region, coal offtake for the power stations is likely to depend on whether operational performance improves, although the timing and extent of such improvements remain uncertain.

Our full year coal guidance given at the finance director's pre-close message remains unchanged as follows:

• Production to be in the range of 38.9Mt to 42.8Mt
• Sales are expected to be in the range of 38.3Mt to 42.4Mt
• Export sales are expected to be between 6.5Mt and 7.2Mt
• Sustaining capital is guided between R2.1 billion to R2.3 billion

The group remains committed to a disciplined approach in determining dividend payouts. In assessing the appropriate dividend cover, we continue to consider the prevailing industry conditions, Exxaro's capital expenditure requirements, and other strategic commitments. This approach is especially prudent given the current economic challenges, including the ongoing impact of logistical constraints.

The board of directors has declared an interim cash dividend, comprising:

• 2.5 times Adjusted Group Earnings
• Pass through of SIOC dividend of R1 535 million

Notice is hereby given that a gross interim cash dividend, number 45 of 843 cents per share, for the six-month period ended 30 June 2025, was declared from income reserves and is payable to shareholders of ordinary shares on 6 October 2025.

For details of the interim dividend, please refer note 6 of the interim financial statements. The details will also be published on our website at www.exxaro.com

Salient dates for payment of the interim dividend are:

Last day to trade cum dividend on the JSE	Tuesday, 30 September 2025
First trading day ex dividend on the JSE	Wednesday, 1 October 2025
Record date	Friday, 3 October 2025
Payment date	Monday, 6 October 2025

No share certificates may be dematerialised or re-materialised between Wednesday, 1 October 2025 and Friday, 3 October 2025, both days inclusive. Dividends for certificated shareholders will be transferred electronically to their bank accounts on the payment date. Shareholders who hold dematerialised shares will have their accounts at their central securities depository participant or broker credited on Monday, 6 October 2025.

Additional information on financial and operational results for the six-month period ended 30 June 2025, and the accompanying presentation can be accessed on our website at www.exxaro.com

On behalf of the board of directors

21 August 2025